Market Trends of Land-based Situational Awareness Systems Industry
The Sensors Segment is Anticipated to Show Significant Growth During the Forecast Period
The sensors segment of the market is anticipated to witness the highest growth during the forecast period. The advancement in technology is supporting the miniaturization of electronics. This miniaturization of electronics is catering to the demand for advanced sensors which will help the end-users to enhance situational awareness of the land systems. For instance, in July 2023, RTX Corporation was awarded a USD 117.5 million contract by the US Army for low-rate initial production of 3rd generation forward-looking infrared (3GEN FLIR) B-Kit sensors. The advanced targeting sensor systems enhance lethality, survivability, and situational awareness in environments, providing combat overmatch for the Army's ground combat platforms.
Similarly, in February 2022, General Dynamics Mission Systems was awarded a USD 5.5 million delivery order for the sustainment of existing Prophet Enhanced sensor systems. The advanced targeting sensor systems enhance the lethality, survivability and situational awareness in austere environments, providing combat overmatch for the Army's ground combat platforms. The development of such advanced sensors is expected to accelerate the growth of the market during the forecast period.
Asia-Pacific Region is Expected to be the Fastest Growing Market During the Forecast Period
In recent years, there has been significant increase in military budgets of countries such as China, India and Japan, among others. Growing cross border conflicts, political disputes between China-India and China-Taiwan, and rising terrorist activities leads to strengthening of defense capabilties from major countries. In 2022, China and India were the second and fourth largest defense spenders in the world with a defense budget of USD 292 billion and USD 81.4 billion respectively.
The countries are acquiring new and advanced armoured vehicles with intelligence, surveillance and reconnaissance capabilities and situational awareness systems. The countries are also procuring sophisticated situational awareness systems for the infantry soldiers. For instance, in August 2023, Elbit Systems, a partner of Hanwha Defence Australia, announced that it had been selected by the Government of Australia as the preferred bidder for the Australian Land400 Phase 3 project. Also, in September 2023, BAE Systems and Larsen & Toubro Limited (L&T) partnered to bring an all-terrain vehicle, the BvS10, to the Indian market. The two companies have forged a licensing and manufacturing agreement to offer the BvS10 for the articulated all-terrain vehicle (AATV) for the Indian armed forces. Such plans of the governments to integrate advanced systems into armed forces to enhance the combat readiness of the military personnel are expected to drive the growth of the market in the region.
